Oct. 7, 2013 | Darling International, Inc., a leading provider of rendering, recycling, and recovery solutions to the United States food industry, has entered into a definitive agreement to acquire the shares (other than certain minority interests) of Vion Ingredients, a division of Vion Holding N.V. (a member of the Vion Food Group), for approximately 1.6 billion Euro (nearly 2.2 billion USD) in cash. Closing is anticipated in January 2014 subject to customary regulatory approvals and finalization of the required employee consultations in the Netherlands.
Vion Ingredients is a worldwide leader in the development and production of specialty ingredients from animal origin for applications in pharmaceuticals, food, feed, pet food, fertilizer, and bio-energy. Vion Ingredients’ global network of 58 facilities on five continents covers all aspects of animal by-product processing through six brands including Rendac (rendering), Sonac (proteins, fats, edible fats, and blood products), Ecoson (green power), Rousselot (gelatin), CTH (natural casings), and Best Hides (hides).
Vion Ingredients was formed in 1930 and is headquartered in Son en Breugel, the Netherlands. Vion Ingredients employs approximately 5,700 people with revenues of approximately 1.6 billion Euro and 200 million Euro (271 million USD) in earnings before interest, taxes, depreciation, and amortization (EBITDA) for fiscal year 2012. For the trailing 12 months through June 30, 2013, reported revenues were 1.68 billion Euro with approximately 210 million Euro of EBITDA.
Vion Ingredients’ rendering business has leading positions across Europe with operations in the Netherlands, Belgium, Germany, Poland, and Italy under the Rendac and Sonac brand names. Value added products include edible fats, blood products and plasma meals, bone products, protein meals, and fats. Rousselot is the leading market provider of gelatin for the food, pharmaceuticals, and pet food industries with operations in the United States, Europe, South America, and China. CTH is a market leader in natural casings for the sausage business with operations in the United States, Europe, and China.
Randall C. Stuewe, Darling International’s Chairman and CEO said, “Our vision of creating a sustainable ingredients business for a growing population is well on its way. The combination of Vion Ingredients with Darling International will create the global leader in converting edible and inedible bio-nutrients streams into specialty products and ingredients for the food, feed, fuel, fertilizer, and pharmaceutical industries. We are truly excited to have the opportunity to join forces with the Vion Ingredients management team and bring this transformational platform to our suppliers, customers, and employees. Furthermore, this transaction will further diversify Darling International’s revenue and EBITDA profile both geographically and from a product line point of view.”
Vion Ingredients, its brands, and geographies will continue to be led by Chief Executive Officer Dirk Kloosterboer. In addition to his current responsibilities, upon closing, Kloosterboer will be named chief operating officer of Darling International and be appointed to the Darling Board of Directors.
“We are very excited to become part of the Darling International group and its heritage,” Kloosterboer commented. “Under its new ownership, we will be able to execute our growth ambitions and provide our employees, customers, and suppliers with a unique global platform, driving further product innovation and penetration of new markets.”